The Hindu Business Line : Low unit value leads to rise in spices import

Kochi April 24 Imports of spices during April - February last fiscal have shown an increase of over 3,000 tonnes over the same period in the previous financial year mainly because of the competitive prices for most of the items in the world market.

The total imports during April-February 2006-07 stood at 81,150 tonnes valued at Rs 490.13 crore against 77,757 tonnes worth Rs 470.02 crore in the same period in 2005-06.

There has been a significant rise in the imports of fresh/dry ginger, turmeric, poppy seed, cassia, star anise and other spices.

In most of the cases the low unit value seems to have paved the way for increased imports, official sources told Business Line.

A total quantity of 18,975 tonnes of fresh/dry ginger was imported valued at Rs 22.29 crore compared with 16,250 tonnes valued at Rs 33.93 crore. The sharp fall in unit value of this commodity had prompted the traders/industry to import it.

As against the unit value of Rs 20.88 a kg in Apr - Feb 2005-06, it was available at Rs 11.80 a kg in the same period last fiscal.

This phenomenon forced several farmers not to harvest even for seeds in Karnataka, grower sources said. The low prices said to have compelled many farmers to shift to some other crop in 2007. The present crop is being sold at local prices anywhere in India from Karnataka, they said.

Short supply

Short supply of star anise, cassia, poppy seed, chilli/paprika and other spices such as aniseed, cambodge, asafoetida and herbal spices in the country has pushed up the imports of these items despite a rise in the unit value in the international market.

Meanwhile, the high prices in the world market for cloves have resulted in drop in imports of cloves, which fell to 5,600 tonnes (7,175 tonnes) valued at Rs 90.89 crore (Rs 104.30 crore) in the same period the previous fiscal. The unit value of this commodity shot up to Rs 162.31 a kg in the world market from Rs 145.37 a kg in Apr-Feb 2005-06.

Pepper decline

Imports of pepper, however, have declined to 14,755 tonnes (15,930 tonnes) valued at Rs 124.62 crore (Rs 97.40 crore). The increase in unit value, which surged to Rs 84.46 a kg from Rs 61.14 a kg in Apr-Feb 2005-06 and tight supply position in the world market said to have led to the drop in the commodity.

Imports of cassia increased to 10,200 tonnes (9,000 tonnes) valued at Rs 30.52 crore (Rs 25.60 crore) despite an increase in the unit value.

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